Australian market analysts have seen opportunities for the local grain industry to boost exports of the products in Asia, particularly in Vietnam.
“The local grain industry should target markets with differentiated products to take advantage of growing demand for grain exports in Asia, particularly in Vietnam,” Australian market analysts was quoted by the Australian Financial Review as saying.
Statistics of the Australian Ministry of Agriculture showed that the demand for Australian wheat has climbed sharply in Vietnam, where population growth and the gradual westernisation of diets have fuelled demand.
In 2014, Vietnam is expected to import around 1.3 million tonnes of wheat from Australia , up from 450,000 tonnes in 1999-2000.
The market for Vietnamese baguette represented a potential opportunity for local growers.
Strategic grains market analyst at the Australian Export Grains Innovation Centre, Peter Elliott said Vietnam is potentially suitable for Australian particular wheats and urged the local sector to target to Vietnam ’s French baguette-style market.
Meanwhile, Lloyd George, market analyst at Ag Scientia Company, pointed to weather-related issues for Australian growers in consistently producing the volume required to meet the Asian and Vietnamese increasing demand.
Additionally, the Australian grain sector also considered Indonesia and China their potential markets.